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MPs probe RAF over R120m in unpaid expert claims

Parliament’s Scopa inquiry hears sworn testimony on systemic failures in procurement, payment and record-keeping at the Road Accident Fund

Scopa chair Songezo Zibi. Picture: PARLIAMENT RSA/PHANDO JIKELO
Scopa chair Songezo Zibi. Picture: PARLIAMENT RSA/PHANDO JIKELO

The standing committee on public accounts (Scopa) has intensified its oversight inquiry into the Road Accident Fund (RAF), following sworn testimony from a medical accounts administrator representing 35 medico-legal experts.

Cecilia Margaretha Minnie appeared before the committee on Friday, submitting an affidavit that detailed systemic failures in the RAF’s procurement and payment processes, with verified outstanding debts exceeding R41m.

Her evidence, corroborated by a consolidated list compiled by a broader group of 47 experts, places the total unpaid amount at R120.7m, excluding interest.

The RAF had failed to honour payments for services rendered as far back as 2014, according to Minnie, despite repeated engagements, directives and undertakings by senior RAF officials.

She cited multiple instances where invoices were resubmitted up to 15 times, often hand-delivered to regional offices where documentation was reportedly scattered and untraceable.

“On many occasions I have had to go on my hands and knees searching these offices to trace my client’s invoices,” she stated under oath.

The committee heard that the dissolution of the RAF’s panel of attorneys in June 2020, without a replacement structure, compounded operational dysfunction.

Medical experts were left without formal procurement channels, clear points of contact or access to necessary documentation. The RAF’s integrated claims management system (ICMS), introduced as a solution to streamline invoice processing and improve traceability, remained nonfunctional, according to Minnie’s affidavit and committee testimony.

Scopa chair Songezo Zibi confirmed the committee’s constitutional authority under National Assembly rules to investigate financial irregularities in public entities. This followed a challenge by former RAF CEO Collins Letsoalo, who argued that only the portfolio committee on transport had jurisdiction over the RAF.

Scopa rejected Letsoalo’s refusal to appear voluntarily and his demand for predisclosure of all evidence. “The committee will not allow any individual to dictate the terms of parliamentary accountability,” Zibi stated.

The inquiry also examined the RAF’s invocation of the legal defence of prescription in July 2021, which was used to reject claims older than three years. This marked a departure from prior commitments to settle these invoices, and was described by Minnie as a disingenuous attempt to “write off” legitimate debts.

The RAF’s reliance on prior authorisation letters from attorneys — many of whom were no longer operational — was similarly criticised, particularly in cases where expert reports were used to quantify claims and defend litigation.

Transport minister Barbara Creecy has stated her department’s intention to revive the Road Accident Benefit Scheme (RABS) Bill, a long-rejected legislative proposal that would replace the fault-based RAF model with a no-fault, defined-benefit system.

The proposed reintroduction of the RABS Bill has drawn criticism from civil society and legal practitioners, who argue that it would limit access to compensation and reduce legal recourse for victims.

The Association for the Protection of Road Accident Victims, which called the bill “ill-advised”, has urged the department to focus instead on enforcing the existing RAF Act and addressing administrative inefficiencies.

Scopa resolved to continue its inquiry, with further witness testimony and document submissions expected in the coming weeks.

roost@businesslive.co.za

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